Why AbbVie (ABBV) Stock Could be Headed Lower

A head and shoulders pattern is emerging in the chart of AbbVie.  If this happens, a down move is expected in the stock…

AbbVie Inc. (ABBV) is a drug company with leadership roles in therapeutic areas such as immunology, hematologic oncology, neuroscience, aesthetics, eye care and women’s health. The company’s top drug, Humira, represents close to half of the company’s current profits.

The company outperformed fourth quarter estimates for earnings and sales. It has been successful in expanding labels for cancer drugs, Imbruvica and Venclexta and has a strong late-stage pipeline. ABBV’s acquisition of Allergan has diversified its revenue into new areas, providing it with additional long-term growth prospects.

ABBV had $8 billion in cash as of the end of the latest quarter, compared with $4.8 billion in short-term debt. The company is also quite profitable with a very high return on equity of 47.9%.

While the stock has shown long-term bullish momentum, its short-term performance has been mixed. This has led to a Momentum Grade of C in our POWR Ratings system.

Take a look at the 1-year chart of ABBV below with the added notations…

See chart and continue reading at STOCKNEWS.com